JPMorgan and Merrill Lynch flexed pricing on the $500 million term loan "B" for Virgin Mobile USA last week. The spread has now increased 50 basis points to LIBOR plus 4%. Maturity on the tranche is six-and-a-half years. The facility also includes a five-year, $100 million revolver priced at LIBOR plus 3 1/2%.
Moody's Investors Service assigned a B3 rating to both tranches. In its report, it wrote that the rating reflects the challenging operating environment the company faces, as well as the company's high leverage and current lack of free cash flow. Calls to Virgin were not returned by press time.
| US Leveraged Loan League Table - 2005 YTD | |||
| Deal Value | |||
| Pos. | Bookrunner | ($) (m) | No. |
| 1 | JP Morgan | 60,820.48 | 187 |
| 2 | Banc of America | 47,797.58 | 251 |
| 3 | Citigroup | 30,914.18 | 72 |
| 4 | Deutsche Bank | 19,081.16 | 45 |
| 5 | Wachovia | 17,143.78 | 95 |
| 6 | Credit Suisse | ||
| First Boston | 13,139.58 | 51 | |
| 7 | Lehman Brothers | 10,552.79 | 30 |
| 8 | Goldman Sachs | 10,000.83 | 25 |
| 9 | UBS | 6,168.82 | 25 |
| 10 | Bear Stearns | 4,891.00 | 20 |
| Subtotal | 220,510.20 | 624 | |
| Total | 270,946.19 | 795 |
| US Market Sponsored Acquisition Related Loans - 2005 YTD | |||
| Bookrunner Table - Apportioned Credit | |||
| Deal Value | |||
| Pos. | Bookrunner | ($) (m) | No. |
| 1 | JP Morgan | 6,273.33 | 18 |
| 2 | Credit Suisse | ||
| First Boston | 5,219.17 | 16 | |
| 3 | Deutsche Bank | 3,089.33 | 8 |
| 4 | Goldman Sachs | 3,004.17 | 7 |
| 5 | UBS | 2,150.83 | 7 |
| 6 | Banc of America | ||
| Securities | 1,946.29 | 10 | |
| 7 | Citigroup | 1,894.20 | 4 |
| 8 | Bear Stearns | 1,860.00 | 8 |
| 9 | Lehman Brothers | 1,670.83 | 5 |
| 10 | Wachovia | 1,485.00 | 12 |
| Subtotal | 28,593.16 | 65 | |
| Total | 34,468.98 | 84 |